Stifel trims Pioneer Natural target, says M&A headlines put bid under shares

Stifel analyst Derrick Whitfield lowered the firm’s price target on Pioneer Natural (PXD) to $286 from $293 and keeps a Buy rating on the shares after having updated the firm’s model to reflect Pioneer’s year-end disclosures "in light of the potential situation" after The Wall Street Journal published an article on Friday indicating ExxonMobil (XOM) has held preliminary talks with Pioneer Natural Resources and at least one other company about a possible acquisition. While acknowledging that the firm has "no knowledge of any M&A," Stifel believes the article is "reasonable" and views Pioneer and private Midland operator Endeavor Energy as the most likely targets for ExxonMobil. The firm adds that it views an imminent deal "as unlikely unless a +25% premium is attached to it" given Pioneer’s roughly 40% underperformance over the last year.